The U.S. steps up its threats of sanctions, big time, and for different reasons, but this could backfire in a ‘Death of the Dollar’ kind of way. Here’s why…
Often times we put up a chart from the World Gold Council.
Can the data be trusted?
But that’s not the point.
The general direction is the point.
You see, Western nations are not stacking gold, and some are even selling.
We need not remind everybody here that Canada unfortunately sold off all of their sovereign gold holdings right at the bottom in 2015.
But today, I’ll present the chart as it pertains to Turkey:
Turkey has doubled their stack in just the last year.
And the “data” only runs through the first three months of 2018.
I can only imagine they have stacked even more since then.
See, here’s the thing – the more the United States pushes ’empire’ on nations that do not want it any longer, the more others are forced to stack gold to protect themselves from myriad negative factors brought on by the United States.
Case in point – reports are coming out that the US State Department is now threatening sanctions on Turkey if they purchase the Russian made air defense missile system, known as the S-400.
Here’s reporting form Southfront:
On June 26, the US State Department once again announced that Turkey would be targeted by sanctions if it receives S-400 air defense systems from Russia under a contract signed by Ankara and Moscow earlier.
The State Department recalled that this decision is a result of the bill President Donald Trump signed into law last summer, which seeks to punish companies that do business with the Russian defense industry.
“We made it clear that if Turkey buys S-400s… there will be consequences. We will introduce sanctions within Countering America’s Adversaries Through Sanctions Act (CAATSA),” Assistant Secretary of State for European and Eurasian Affairs Wess Mitchell said at a hearing of the Senate Foreign Relations Committee.
Let’s review what happens when nations become subject to U.S. Sanctions:
- Russia has sold half of its US Treasury holdings just in May (and is using the proceeds to buy gold at suppressed prices)
- Iran uses an ‘oil for gold’ scheme to avoid US Sanctions (as well as gold becoming the currency of choice after the latest sanctions)
But that’s not the only threat of sanctions coming out of the U.S. over the last two days.
Just today, the US is threatening sanctions on China and India if they import any oil from Iran (bold added for emphasis):
Issuing a strict warning, the US on Wednesday threatened all countries including India and China to stop oil imports from Iran or face sanctions. There would be ‘zero’ waivers to any nation dealing with Iran, the US said, PTI reported. “On China and India, yes, certainly,” PTI reported citing an unidentified state department official when asked if the US has told all countries, including India and China, to stop all their imports of Iranian oil by November 4.
Do I really need to show the graph again?
Ah, I guess I will:
Granted, India, as a sovereign nation, according to the WGC data, is not mad stacking like China, Russia or Turkey, but Indians in general are super-stacking goldbugs.
Let’s connect some dots, shall we?
Let’s see here:
- The US either has or is threatening sanctions on nearly every gold stacking nation on the planet.
- Those nations aren’t afraid to dump their US Treasury holdings.
- At least on paper, the US is relying on all those nations we’re threatening with sanctions to buy our debt so we can keep the fiat paper ponzi scheme alive, especially China.
- Those nations have already set-up equivalent and parallel systems to SWIFT, such as CIPS, and alternate systems such as the AIIB, the BRICS alliances, and so on and so forth.
Here’s an honest question we need to be asking ourselves: Who holds the cards here?
You don’t have to answer.
Here’s an even better question: How long are all these nations going to keep putting up with US Empire?
Because it seems to me they could cut their US dollar losses and just pull the plug anytime they want.
And that would be the end of the dollar.
And of the United States as we know it.
– Half Dollar
About the Author
U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.